The confidence of SMEs has been shaken

By: Trademagazin Date: 2023. 10. 26. 12:14

The mood of companies has not been so negative for seven years: the K&H SME confidence index is currently at -11 points after a 6-point drop. The main reason for the decline is that a significant number of businesses expect higher public charges. The shaking of confidence can be felt in all revenue categories and sectors, and for the first time in eight years, the expectations of agricultural enterprises are also in the negative range.

The K&H SME confidence index dropped significantly in the third quarter, which indicates the expectations of Hungarian micro, small and medium-sized enterprises for the next year. The indicator fell from -5 points to -11 points, thus approaching the lowest value of the last seven years (-14 points).

“The index has been in the negative range for more than a year, which was last seen before 2017. After the improving trend of the past three quarters, there was still some hope that the confidence of companies could reach the positive range, but with the current 6-point drop, this again seems far-fetched. The main reason for the current decline is that a significant number of businesses expect higher public charges. The unfavorable picture is overshadowed by the fact that they expect a favorable turn in corporate loan interest rates”

– said Zoltán Rammacher, marketing and sales manager of K&H SME.